The Great Park board has approved a $16 million budget for the park making cuts to contracts and consultants. JEBB HARRIS, THE ORANGE COUNTY REGISTER

Orange County Great Park officials have approved a fiscal year 2012-13 budget of $16 million that reduces spending across the board for all park contacts.

In the past eight weeks, Great Park staff reviewed every line item in the budget and reduced every professional service's contract, as well as the budgets for park services including arts and cultures, said CEO Mike Ellzey.

The board approved a nearly balanced budget, with $15.9 million in expected revenue and a little more than $16 million in expenditures. The budget must next move on to the Irvine City Council for final approval.

Lead architect Ken Smith, who designed the park's master plan, will no longer be kept on through a $10,000 retainer, but will work with the park through architect studio WRNS, Ellzey said.

The controversial no-bid contract for public relations firm Forde & Mollrich for which the board has been criticized in the past was cut in half, bringing the firms' $100,000-per-month retainer fee to $50,000, with $300,000 for production costs.

However, the cuts will not jeopardize the park's forward momentum, and the budget provides enough flexibility for staff to return to the board for modifications should there be any changes regarding the future of redevelopment in California, said Cliff Wallace, chief financial officer for the park.

Several directors were in favor of waiting 30 days for more clarity on the park's financial situation in regard to redevelopment before passing a budget. In the past, the board has not approved a budget until April.

"There is an element of panic and retreat associated with this that puzzles me a bit," board member Larry Agran said. In light of such uncertainty, "it would be absolutely foolish for us to be adopting a budget."

The majority of the board, however, agreed that a month would not significantly change park finances, and that the budget is flexible enough to alter if there is a need.

"Right now we have to deal with what is and not with what will be or could be, and we need to do it with discipline, and we need to do it in a timely matter so the public knows that this is a responsible board," said board member Walkie Ray.

Ellzey said another month would not lead him to change spending recommendations, even if the extra time brought clarity to the situation.

Agran proposed more cuts to specific park contracts, which were supported and passed by the board. A motion by board member Steven Choi to cut the park's largest contract, with public relations firm Forde & Mollrich, even further received little support.

The board voted to reduce park contracts with Chora, LLC, a fund-raising consultant, to $100,000; Optalytics, LLC, for financial and management consulting, to $70,000; Strada Investment Group, an enterprise consultant, to $100,000; and Nossaman, LLP, specialty environmental counsel, to $150,000.

Ellzey strongly advocated for his proposed and "well considered, well developed" budget and said the proposed cuts to contracted services go too far and would "decimate" his team.

"With line item cuts of professional services, you pull my entire operation out of equilibrium," he told the board.

Park officials also briefed the board on revenue opportunities coming up, including land leases, and officials are nearing the final stages of negotiation to bring in a private developer to build and operate a community ice rink. Ellzey said the park hopes to bring in an amphitheater to coincide with the probable closure of the Verizon Wireless Amphitheater when its lease ends in 2017.

Nearly 75 percent of the park's revenue comes from Heritage Fields, which is a dangerous place to be, Lalloway said. Future deals with the developer may make the park even more dependent on its private development partner, he added.

Heritage Fields plans to build 10,700 homes in the Great Parks Neighborhood and has offered to develop a portion of the sports park. The developer is negotiating with a subcommittee of the City Council.

Other revenue includes $1.4 million from the RV Storage lease, the Green and E-Waste recycling operation fees, and rents, fees and miscellaneous income.

In a mid-year budget update for this fiscal year, revenues were down $1.4 million because of changes including the agreement with Goldenvoice, which should be brought to the board in April, lower than expected sponsorship due to staffing issues, and low parking revenue due to Cirque du Soleil's decision not to return to the park until 2013. Expenditures for this fiscal year increased $350,000.

The project is in better shape than any other redevelopment area in the state, said board Chairwoman Beth Krom, in response to worries about revenue and funding sources. The city owns the land, unlike other former Marine bases undergoing renovation, and the park has anticipated revenue from agreements made with its private development partner.

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